Block insurance remains one of the most complex areas of property insurance—and also one of the most important. Whether the building is overseen by a freeholder, a Right to Manage (RTM) company, a residents’ management company (RMC), or a managing agent, the decisions made about insurance affect every flat owner and every occupant.

As we move toward 2026, insurers will expect clearer governance, better documentation, and more professional risk presentation from any party responsible for arranging block insurance. Poorly arranged block policies are increasingly leading to claim disputes, uninsured losses, rising premiums, and unexpected liabilities.

On Day 14 of our 20-day series, we explore how block insurance works, why governance matters, and how NetRent and Clear Insurance Management ensure landlords, RTM directors and freeholders secure robust protection, competitive pricing and smoother claims outcomes.

Why Block Insurance Requires Specialist Handling

Block insurance differs significantly from individual landlord policies because it must address:

• structural reinstatement

• communal areas

• liability for third-party injury

• lifts, plant and machinery

• shared heating systems

• flat roofs

• cladding or non-standard construction

• complex ownership arrangements

• lease obligations

• managing agent responsibilities

Insurers treat these buildings as large, interconnected risk entities, not as standalone units.

With increased regulatory scrutiny (especially around fire, construction and safety standards) coming into sharper focus ahead of 2026, specialist handling is essential.

The 2026 Underwriting Landscape for Block Insurance

Insurers are expected to tighten requirements around:

• fire risk assessments (FRAs)

• EWS1 or cladding documentation

• electrical and gas safety

• building construction details

• maintenance schedules

• flood and escape-of-water resilience

• claims history transparency

• occupancy verification

• governance and management structure

In short, insurers will be far more selective in 2026 when underwriting block risks.

Those with poor documentation, unclear governance or previous issues may face:

• restricted insurer appetite

• increased excesses

• higher premiums

• more conditions or exclusions

• difficulty placing cover at all

Common Issues We See in Block and RTM Arrangements

1. Unclear Responsibility

Confusion often exists around:

• who is responsible for arranging cover

• who manages claims

• who must maintain compliance documentation

• who pays excesses

• who declares occupancy changes

Why it matters for 2026

Insurers want clarity. Ambiguity weakens claims and increases insurer concern.

2. Outdated or Missing Fire Risk Documentation

FRA reports, EWS1 forms, compartmentation details and cladding certifications are crucial.

2026 reality:

Insurers will expect this documentation before offering terms.

3. Inaccurate Rebuild Sums (Underinsurance)

Block-wide underinsurance can affect every leaseholder and drastically reduce claim payouts.

2026 trend:

Professional valuations may become essential for insurer acceptance.

4. Gaps in Liability Cover

Blocks require multiple layers of liability cover:

• property owners’ liability

• legal liability to flat owners

• communal area liability

• contractors’ liability oversight

Incorrect limits expose every flat owner to risk.

5. Poor Claims Handling Structure

Insurance claims in blocks often stall due to:

• unclear roles

• poor communication

• incomplete records

• lack of proactive claim management

This has direct consequences for premiums and insurer confidence.

How NetRent & Clear Deliver Smarter Block Policy Placement for 2026

Our combined expertise ensures that block policies are placed with:

✔ Accurate rebuild valuations

✔ Comprehensive fire and safety documentation

✔ Proper understanding of construction and materials

✔ Clear governance and management structure

✔ Correct occupancy declarations

✔ Appropriate liability limits

✔ Tailored cover extensions

✔ Strong underwriter relationships

✔ Claims support for directors, agents and leaseholders

We present block risks professionally—giving insurers full confidence in the management standards.

Why RTMs and Freeholders Need Stronger Support Ahead of 2026

RTMs and RMCs are often run by volunteers with limited time and no insurance background. Freeholders may also rely on managing agents who do not specialise in insurance.

In 2026, insurers will expect:

• clear documentation

• strong risk controls

• regular inspections

• evidence of compliance

• structured maintenance

• clear communication channels

Landlords involved in RTMs or freehold structures must be ready to demonstrate competent governance.

The Financial Impact of Getting Block Insurance Right

Correctly arranged block insurance protects:

• the structure of the building

• liability exposures

• communal areas

• leaseholders’ investments

• long-term premium stability

• claims outcomes

• lender requirements

Poorly arranged block insurance exposes everyone to:

• uninsured losses

• disputes between leaseholders

• significant premium increases

• difficult renewals

• claim delays or reductions

With 2026 bringing even stricter underwriting conditions, professional block placement is not optional—it is essential.

Why Landlords Should Engage Early

Landlords purchasing flats or participating in RTMs should not assume the block insurance is “handled correctly.” Many discover gaps only when it’s too late.

NetRent and Clear help landlords:

• review existing block cover

• identify weaknesses

• support RTM directors

• liaise with managing agents

• recommend improvements

• prepare for 2026 renewal negotiations

With our guidance, landlords gain peace of mind that the entire building—not just their own unit—is properly protected.

Contact NetRent

For support reviewing or arranging block policies for 2026:

Telephone: 01352 721300
Email: support@netrent.co.uk